Should 401k TAX EXEMPT DONATIONS be capped at $2400 instead of the current $18,000 per year?

[ColonelAngus]

Why or why not?

 

[Dont Taz Me Bro]

No one is proposing to cap them at $2400 per year. The discussion was to cap the amount of tax free contributions at $2400 per year.

 

[oldsoul]

Why or why not?

I would argue no caps of any kind. Lends itself to people being responsible and saving for their own retirement instead of expecting Uncle Sam to.

 

[deanrd]

No one is proposing to cap them at $2400 per year. The discussion was to cap the amount of tax free contributions at $2400 per year.

We know what it meant.

Follow the GOP plan and at 18 thousand you would pay taxes of 6 thousand.

The way it works now is that you pay the taxes when you withdraw it. That's how it works on mine. It gives you incentive to not take it out. But keep saving.

 

[ColonelAngus]

No one is proposing to cap them at $2400 per year. The discussion was to cap the amount of tax free contributions at $2400 per year.

Well of course. That's the entire point.

Do you support lowering the TAX FREE contribution from $18,000 per year to $2400?

 

[deanrd]

Why or why not?

I would argue no caps of any kind. Lends itself to people being responsible and saving for their own retirement instead of expecting Uncle Sam to.

Yea, let the fukers get old and starve It's what they get for having families.

In fact, why even have an army. What are we protecting. Just fuk everything. Every man for himself.

 

[G.T.]

401ks are a crock of dogshit. It's another human controlling your money, like social security is.

Suuuure you can borrow some of..your own money. For a penalty.........

ermmkayy

 

[ColonelAngus]

We should encourage individual retirement planning so the government doesn't have to provide for everyone who is retired.

We already support enough working age people who are fully capable of working.

 

[BluesLegend]

We should give the money to the government to safeguard for our retirement?????????????????????????????????????????????? Fuck no!

 

[usmbguest5318]

Should 401k investments be capped at $2400 instead of the current $18,000 per year?

Were I to have my way, there'd be no cap at all, so I must answer your question no.

Why do I think there should be no cap?

• Because I see no good reason to place limits on the means, modes and sums one opts to save to finance one's retirement. Yes, there are other ways of saving for retirement, but most of them that offer returns comparable to those one can obtain via 401K plans also require either a good deal of effort on one's own part or that one engage a financial advisor.
  
  Few people have the time, to say nothing of the technical know-how to, for themselves, do the requisite research and maintain an keen understanding of and ongoing awareness about host of things, not the least of which include specific investment opportunities, tactics, trends, indicators, etc. One's need to know and aptly apply that type of knowledge is dramatically reduced by one's ability to avail oneself of financial investing experts' doing that on behalf of millions of people at one time. For the average person, that's a good thing.
• Because the cap, for many people, serves as an implied indicator of the maximum they actually need to invest to fund their dotage. It doesn't really matter whether that be so, what matters is that people do in fact make that inference without confirming whether it is so. What also matters is that for some people, the maximum they can invest in a 401K will not support their retirement lifestyle and the cap necessarily forces them -- at the cost of a lot of their time and/or money -- to pursue additional avenues for doing so. Why should they have to do that when simply putting more into their 401K would do the trick?

 

[BluesLegend]

CUT government spending to offset the tax cuts its not rocket science. Those stupid morons in DC don't need one more dime of OUR money. Its time for tough love, cut spending or get thrown out of office you moronic tax and spend bunch of mooching leaches.

 

[usmbguest5318]

We should give the money to the government to safeguard for our retirement?????????????????????????????????????????????? Fuck no!

??? Do you know what a 401K is and what it is not?

 

[BluesLegend]

Were I to have my way, there'd be no cap at all

Its capped otherwise the left would wail like a stuck pig claiming it was a loophole for the 'rich'.

 

[usmbguest5318]

No one is proposing to cap them at $2400 per year. The discussion was to cap the amount of tax free contributions at $2400 per year.

It's essential to understand that the tax classification of 401K contributions is "tax deferred" not "tax free." The two are not the same things.

 

[Skull Pilot]

The 401k reform we should all be calling for is to have the growth be tax free and to get rid of the minimum required distributions.

As the laws governing qualified plans are written all they do is squeeze every tax dollar possible out of retirees before they die.

 

[usmbguest5318]

Were I to have my way, there'd be no cap at all

Its capped otherwise the left would wail like a stuck pig claiming it was a loophole for the 'rich'.

That really has nothing to do with the question. The OP-er asked what we think; my post indicates what I think. I've thus answered the question posed as it is posed. The why's and wherefores about what someone else may think of the cap's origins or intended purposes have nothing to do with my answer, and neither did the OP-er "color" his OP so much as even by alluding (obliquely or clearly) to the whys and wherefores; thus they also have nothing to do with his question.

 

[BluesLegend]

We should give the money to the government to safeguard for our retirement?????????????????????????????????????????????? Fuck no!

??? Do you know what a 401K is and what it is not?

Income taxes are deferred on your 401k contributions, so you make money on both your money and the deferred taxes. Also when you do retire and begin withdrawing money from your 401k you are likely to be at a lower tax bracket, again resulting in more money for your retirement. That bozo Pelosi doesn't want to wait for people to retire to get her hands on the income tax money, she want's it right now so she can spend it.

Christ people DC has already spent every dime you sent them, plus borrowed another $20 trillion and spent that. They have forced us to contribute HUGE sums of money to Social Security, which they have raided multiple times and have no way of paying us back OUR money. So now they want to screw us out of the social security benefits we were forced to purchase via raising the retirement age and hoping most people die before they can collect a dime.

 

[BluesLegend]

Were I to have my way, there'd be no cap at all

Its capped otherwise the left would wail like a stuck pig claiming it was a loophole for the 'rich'.

That really has nothing to do with the question. The OP-er asked what we think; my post indicates what I think. I've thus answered the question posed as it is posed. The why's and wherefores about what someone else may think of the cap's origins or intended purposes have nothing to do with my answer, and neither did the OP-er "color" his OP so much as even by alluding (obliquely or clearly) to the whys and wherefores; thus they also have nothing to do with his question.

Its called a discussion thread not a question and answer thread. Lets talk facts...FACT the government is one again kicking the idea around about how to take OUR money and spend it FACT!

 

[Skull Pilot]

We should give the money to the government to safeguard for our retirement?????????????????????????????????????????????? Fuck no!

??? Do you know what a 401K is and what it is not?

Income taxes are deferred on your 401k contributions, so you make money on both your money and the deferred taxes. Also when you do retire and begin withdrawing money from your 401k you are likely to be at a lower tax bracket, again resulting in more money for your retirement. That bozo Pelosi doesn't want to wait for people to retire to get her hands on the income tax money, she want's it right now so she can spend it.

Christ people DC has already spent every dime you sent them, plus borrowed another $20 trillion and spent that. They have forced us to contribute HUGE sums of money to Social Security, which they have raided multiple times and have no way of paying us back OUR money. So now they want to screw us out of the social security benefits we were forced to purchase via raising the retirement age and hoping most people die before they can collect a dime.

That's the line if you believe it but in reality you have no control over what tax bracket you will be in. The government tell you what you MUST withdraw every year so if you were a diligent saver you might end up in a higher bracket than you think.

And if you don't take out what the government tells you to you get fucked up the ass without lube by 50% penalties.

 

[BlindBoo]

The money will be taxed when it is withdrawn. So I like the higher cap.